General sales tax on electricity (GST)
Definition. General sales tax on an electricity bill is the federal sales tax applied to the value of electricity supplied, calculated on the energy charge together with fuel and tariff adjustments and surcharges.
Also called: GST · Sales tax · S. Tax
Where you see it: In the taxes block, normally the largest of the tax lines.
The base is wider than you think
GST is not charged on units alone. The base includes the energy charge, fixed charges where applicable, FPA, quarterly adjustments and the various surcharges.
That is the mechanical answer to the most common complaint about this line: a spike in FPA raises the base, and GST rises with it even though consumption was flat.
Rate and category
The standard rate is set under the Sales Tax Act and has sat in the high teens in recent years. Some consumer categories carry different treatment, and unregistered commercial and industrial consumers can attract further sales tax at a higher rate.
Lifeline consumers are exempt. The exemption is applied automatically by the billing system where the account qualifies.
Frequently asked questions
Can a business claim back the GST on its electricity bill?
A sales-tax-registered business can generally claim input tax on utility bills issued in the registered name at the registered premises. The bill must carry the registration number, which is why commercial consumers ask the DISCO to add their STRN to the account.
My units fell but GST rose. Is that an error?
Usually not. Check the FPA and quarterly adjustment lines on both bills — if either rose, the tax base rose with them regardless of your consumption.
Related terms
- Electricity duty — The small provincial percentage on your electricity bill: who levies it, why the rate differs between Punjab, Sindh, KP and Balochistan, and what it is calculated on.
- Fuel price adjustment — The mechanics behind the FPA line: who files it, the two-month lag, why it sometimes goes negative, and why your local office cannot change it.
- Income tax on electricity bills — The advance income tax line on Pakistani commercial and industrial electricity bills, when it applies to domestic consumers, and how to actually claim it back.
Go further
Back to the full 44-term glossary, or open your own bill with the reference number lookup.